Community-Based Energy Development (C-BED)

2005 Minnesota law requiring Minnesota utilities to establish tariffs for wind energy projects meeting specific requirements for local ownership. The tariff sets a framework for negotiation of power purchase agreements between utility companies and qualifying community-based energy projects where the payment for energy in the first 10 years of the project is higher than in the last ten years. Utilities are not obligated to enter into C-BED contracts, Under the original C-BED legislation, the tariff rate was capped at a net present value of 2.7 cents per kilowatt hour calculated over the life of the power purchase agreement (using the utility's normal discount rate). This cap was eliminated in 2007.